UNITED STATES OF AMERICA
BEFORE THE SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
* * * * * * * * * * * * * * * * *
In the Matter of *
*
ENTERGY CORPORATION * CERTIFICATE
ENTERGY ENTERPRISES, INC. * PURSUANT TO RULE 24
*
File No. 70-7851 *
File No. 70-8002 *
File No. 70-8010 *
File No. 70-8105 *
*
(Public Utility Holding Company *
Act of 1935) *
* * * * * * * * * * * * * * * * *
Pursuant to Rule 24 promulgated by the Securities and
Exchange Commission (SEC) under the Public Utility Holding
Company Act of 1935, as amended (Act), modified by the
application(s) - declaration(s), as amended, in the above
referenced files and the related orders dated July 25, 1991,
December 14, 1992(2), December 28, 1992, July 8, 1993, and June
30, 1995, respectively, this is to certify that the following
transactions were carried out during the three (3) months ended
March 31, 1998 by Entergy Enterprises, Inc. (Enterprises)
pursuant to the authorization of the SEC.
Programs Authorized
Pursuant to the Orders, Enterprises is authorized to (a)
conduct preliminary development activities with respect to
various investment opportunities for the Entergy System, (b)
market to non-associates the System's expertise and capabilities
in energy-related areas, including the expertise of Entergy
Power, Inc. (EPI) gained from its bulk power business, (c) market
to non-associates intellectual property developed by System
companies, (d) provide various consulting, management,
administrative and support services to associate companies,
excluding certain associate companies (Excluded Companies<FN1>), (e)
provide directly, or indirectly through one or more special
purpose subsidiary companies of Entergy Corporation (Entergy) or
Enterprises (O&M Subsidiaries), various operations and
maintenance services to non-associate or associate companies, and
(f) develop and field test telecommunications systems for
advanced energy management and other utility applications.
During the quarter, Enterprises participated in the
following:
I. Preliminary Development Activities
During the quarter, Enterprises has been engaged in
preliminary development activities relating to investigating
sites, research, contract drafting and negotiations, acquiring
options or rights, partnership selection and other activities
necessary to identify and analyze investment opportunities for
Entergy. These development activities include domestic and
international opportunities.
During the quarter, Enterprises expended $223,770 for
preliminary development activities associated with potential
investments that would qualify as "exempt wholesale generators"
under Section 32(a) of the Act. In addition, Enterprises
recorded an expenditure of $7,240,294 for preliminary development
activities associated with potential investments that would
qualify as "foreign utility companies" under Section 33 of the
Act. Enterprises also expended $1,000,976 for preliminary
development activities associated with potential investments that
would qualify as "nonutility business" and $266,573 for
preliminary development activities related to non-exempt
wholesale generating facilities. Finally, Enterprises recorded
an expenditure of $2,606,433 for preliminary development
activities associated with potential investments in other
domestic energy related businesses.
II. Management Services Provided to Associate Companies
Enterprises provided certain management and support services
to its associate companies, EPI, Entergy Power Marketing Corp.,
Entergy Power Edesur Holding Ltd., Entergy S.A., Entergy
Integrated Solutions, Inc. (EIS), Entergy Technology Holding
Company (ETHC), Entergy Technology Company (ETC), Entergy Power
Development Corporation, Entergy International Holdings, Ltd.,
LLC (formerly Entergy Power Development International
Corporation), Entergy Pakistan, Ltd., EP Edegel, Inc., Entergy
Power CBA Holding Ltd., Entergy Operations Services Inc., Entergy
Power Operations Corp., Entergy Power International Holdings
Corporation, Entergy Power Generation Corporation, and Entergy
Nuclear, Inc. (ENI). Enterprises charged these companies for
direct costs incurred plus an indirect loading based upon current
month Enterprises administrative charges. In regard to EPI
($145,481), these services included marketing of EPI capacity and
energy to other utilities at wholesale, preparation of contracts
and regulatory filings, oversight of plant operations and
maintenance by plant operators, and procurement of transmission
services. In regard to Entergy Power Marketing Corp.($2,923,224)
these services included marketing of energy to utilities at
wholesale, preparation of contracts and regulatory filings and
procurement of transmission services. In regard to EIS
($697,632), Entergy Power Edesur Holding Ltd. ($100,405.99), ETHC
($1,031,572), Entergy Technology Company ($425,821) Entergy Power
Development Corp. ($10,162,876.73), Entergy International
Holdings, Ltd.,LLC. ($2,046,095.88), Entergy Pakistan Ltd.
($41,793.40), EP Edegel, Inc. ($417,839.89), Entergy Power CBA
Holding Ltd. ($4,973.93), Entergy Operations Services Inc.
($122,933), Entergy Power Operations Corp. ($810,207.27), Entergy
Power International Holdings Corp. ($456,240) Entergy Power
Generation Corp. ($170,566.27), and Entergy Nuclear, Inc.
($147,235), these services were related to management oversight
and project development.
III. Consulting Activities with Non-Associate Companies
Enterprises, under contract with Louisiana Hydroelectric
Ltd. Partnership, continues to provide an array of technical
services/support for a hydro electric transmission line project.
Certain Entergy Services, Inc. personnel are providing the
services. The Louisiana Hydroelectric Ltd. Partnership was
charged $12,600 for services rendered during this quarter.
IV. Development and Field Testing of CCLM/AFS
As previously reported, Enterprises concluded its CCLM
testing program and does not intend to resume testing of CCLM
dedicated systems in the foreseeable future. However,
consistent with Enterprises' authorization to engage in
preliminary development activities, Enterprises continues to
investigate other utility and energy related applications of
communications technologies, including automated meter reading,
power outage reporting and consumer accessible information such
as real-time meter information and bill estimation systems.
Amounts expended by Enterprises in connection with such
preliminary development activities are reported as "nonutility
business" related expenses under Item "1" above.
V. Formation and Capitalization of O&M Subsidiaries
During the quarter, no amounts were expended to form
and capitalize any O&M Subsidiaries pursuant to the Commission's
order dated September 30, 1995.
VI. Nature and Extent of O&M Services Provided.
During the quarter, Enterprises' wholly owned subsidiary,
Entergy Nuclear, Inc. (ENI), provided nuclear management services
to Maine Yankee Atomic Power Company. A new contract was signed
on November 6, 1997, to extend the original agreement to provide
management services for initial decommissioning activities
through September 30, 1998. ENI was paid a fixed monthly fee for
providing these services and was reimbursed its actual expenses
for labor and related charges at cost for the services provided.
The total amounts billed for services in the first quarter were
$1,690,789 consisting of a market based fee and reimbursable
expenses.
In addition, during the quarter, Enterprises' wholly owned
subsidiary, Entergy Operations Services, Inc. (EOSI), provided
power project related operation and management services to
several customers, including professional advice, technical
expertise and maintenance services. Specifically, for RonJac
Enterprises, EOSI's services included Harris D20 RTU training for
personnel at the Corps of Engineers' Gillham Lake facility.
Also, for TE Products Pipeline Company, EOSI replaced insulators
on a 115kV switch at their substation. The total amounts billed
for services in the first quarter were $13,640, consisting of
market based fees and reimbursable expenses.
Entergy and Enterprises represent that no Excluded Company
has subsidized the operations of Enterprises or any O&M
Subsidiary, and that the rendering of O&M Services by O&M
Subsidiaries is in compliance with the applicable rules,
regulations and orders of the Commission and has not adversely
affected the services provided by any Excluded Company to its
customers.
VII. Financing, Amortization and Financial Statements
During the three months ended March 31, 1998:
A. Enterprises incurred no amortization expenses related to
the organization of EIS.
B. Enterprises' unaudited unconsolidated Balance Sheet and
unconsolidated Income Statement for the three month period ended
March 31, 1998 are included as Exhibit 1.
IN WITNESS WHEREOF, the undersigned companies have caused
this certificate to be executed on this 15th day of May, 1998.
ENTERGY CORPORATION
By: /s/ Louis E. Buck
Louis E. Buck
Vice President,
Chief Accounting Officer &
Asst. Secretary
ENTERGY ENTERPRISES, INC.
By: Stephen Refsell
Stephen Refsell
Asst. Secretary
_______________________________
<FN1> The Excluded Companies are Entergy's retail operating
companies (Entergy Arkansas Inc., Entergy Louisiana Inc., Entergy
Mississippi Inc., Entergy New Orleans Inc. and Entergy Gulf
States Inc.), System Energy Resources, Inc., System Fuels, Inc.,
Entergy Operations, Inc., Entergy Services, Inc., and any other
subsidiaries that Entergy may create whose activities and
operations are primarily related to the domestic sale of electric
energy at retail or at wholesale to affiliates or the provision
of goods or services thereto.
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 1998
(UNAUDITED)
ASSETS
PROPERTY
Furniture and Equipment $ 6,675,072.77
Intangible Assets (855.68)
Construction in Process 618,734.35
----------------
Total Property 7,292,951.44
----------------
INVESTMENTS
Investment in Entergy IS, Inc. 51,736,691.15
Investment in EOSI 2,289,493.69
Investment in ENI 3,702,401.65
----------------
57,728,586.49
----------------
CURRENT & ACCRUED ASSETS
Cash 2,026,349.74
Working Funds/Travel Advances 523,789.53
Special Deposits 398,670.90
Temporary Cash Investments 8,354,850.07
Accounts Receivable 74,028.62
Accounts Receivable - Associated Companies 8,032,569.51
Accounts Receivable - Customer Service (1,368.35)
Accrued Interest 7,278.15
Prepaid Expenses 134,962.76
Income Taxes Receivable 106,128.55
----------------
Total Current and Accrued Assets 19,657,259.48
----------------
DEFERRED DEBITS
Accumulated Deferred Income Tax-Fed & State 6,603,907.19
Miscellaneous Deferred Debits (2,799,568.12)
----------------
Total Deferred Debits 3,804,339.07
----------------
Total Assets $ 88,483,136.48
================
These are interim financial statements prepared without notes.
<PAGE>
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 1998
(UNAUDITED)
CAPITAL
Common Stock $ 57,400,000.00
Miscellaneous Paid-in Capital 153,000,000.00
Retained Earnings (145,946,169.24)
-----------------
Total Capital 64,453,830.76
-----------------
LIABILITIES
CURRENT & ACCRUED LIABILITIES
Accounts Payable 7,392,908.98
Accounts Payable to Associated Companies 1,991,596.82
Taxes Accrued (2,804,445.26)
Tax Collections Payable 391,292.91
Miscellaneous Current & Accrued Liabilities 4,677,250.60
-----------------
Total Current & Accrued Liabilities 11,648,604.05
-----------------
LONG TERM LIABILITIES
Notes Payable - Entergy Corp. 11,000,000.00
-----------------
Total Current & Accrued Liabilities 11,000,000.00
-----------------
DEFERRED CREDITS
Other Deferred Credits 1,380,701.67
-----------------
Total Deferred Credits 1,380,701.67
-----------------
Total Liabilities 24,029,305.72
-----------------
Total Capital & Liabilities $ 88,483,136.48
=================
These are interim financial statements prepared without notes.
<PAGE>
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED INCOME STATEMENT
THREE MONTHS ENDED MARCH 31, 1998
(UNAUDITED)
REVENUE
Services Rendered Non-Associates $ 12,600.00
Services Rendered Associates 15,358,356.47
Equity in Earnings of Subsidiaries (1,782,970.62)
Interest Income 134,393.77
Dividend Income 9,300.45
--------------
Total Revenue 13,731,680.07
--------------
EXPENSES
Salaries, Wages and Benefits 7,315,384.91
Outside Services 6,521,567.87
Selling and Marketing Expenses 859,720.10
Rent 961,556.69
Administrative and General 3,107,523.92
Active Development Credit (637,405.28)
--------------
Total Administrative and General Expense 18,128,348.21
--------------
Taxes Other Than Income 99,762.79
Depreciation and Amortization 566,338.50
Miscellaneous Expenses 20,003.63
--------------
Total Expenses 18,814,453.13
--------------
Income (Loss) Before Income Taxes (5,082,773.06)
Income Taxes - Federal (1,011,409.46)
Income Taxes - State (Benefit) (95,891.52)
Provision for Deferred Income Taxes - Federal 40,988.33
Provision for Deferred Income Taxes - State 8,141.30
--------------
Net Income (Loss) (4,024,601.71)
==============
These are interim financial statements prepared without notes.
